ENTREPRENEURSHIP – BUSINESS DEFINTION

BUSINESS DEFITION-PRODUCT DEFINITION

 Product
• Anything offered to a market for attention,
acquisition, use, or consumption that might
satisfy a need or want.

• Products; includes goods, services, places,

persons and ideas

• Some products are sold only to consumers,

while others are sold to organizations

• Whether a product is a consumer product or

a business product depends on how it is used
8-3
BUSINESS DEFITION-PRODUCT DEFINITION

STRATEGIC PROCESS
 VISION - MISSION
Who I will be/where I will go to --- what I will do to satify customers’ needs
Vision (Statement)
• A statement of purpose (strategic intent) committing the organization
to ambitious general goals. Our future scenario: who are we going to
be and where are we going to go to?

• Provides a sense of direction and purpose.

• Drives strategic decision making

and resource allocations.
Mission (Statement)
• A description or declaration of why a company is in
operation now and for the future
• Provides the framework or context within which strategies
are formulated
• It is mainly the results of:
• Values or guiding standards that drive and shape the
actions and behavior of employees (-->)
• Major goals or objectives
Values
• How managers and employees should conduct themselves
• Organizational culture
• The set of values, norms, and standards that control how employees work to
achieve an organization’s mission and goals
• Often seen as a source of competitive advantage
• In high-performing organizations, values respect the interests of key
organizational stakeholders.
Mission slogans
What the company is trying to achieve over the medium to
long term

• The Boeing Company in 2016:

• “People working together as a global enterprise for aerospace leadership”

• Microsoft:
• “To empower people through great software, any time, any place, on any
device”
Abells’ three Dimension for Defining the business of a
watch company
Customer Function:
Utility/ Ornamental

Alternative Technologies
Mechanical/ Quartz
technology

Customer Groups
Children , men or
women
Customer needs (what is the product/service good for?)
In the Abell Framework all customer needs that are relevant to
the company are identified and listed. These customer needs
are determined on the basis of the product as a result of which
a link is made to customer benefits. Example: A software manufacturer
responds to the needs of the customer by only delivering packages that can be installed
by laypeople very easily. In addition, they offer virus free software and the possibility to
clean up the software on a monthly basis. They also provide clear manuals and a
telephone helpline.
TARGET (Customer groups / Buyers)
Marketing is all about buyers. Without buyers there would not
be a market. Each organization wants to get down to the core
of the buyers and therefore customer segmentation is very
important. By having a thorough knowledge of the various
target groups, an organization can make targeted product
offers. Example: A software manufacturer delivers products to B2B and B2C
customers. The manufacturer reaches these groups by deploying their own Account
Managers, distributive trade, retail trade and trade associations.
Technologies
The term ‘technologies’ should be interpreted broadly. In
addition to technologies that are used to create a product,
there are also technologies that are used to put a product on
the market. Which marketing campaign must be used and in
which way is the market research on a product carried out?
Example: A software manufacturer uses the latest technologies in his software products.
In addition, the manufacturer offers support to customers by means of a 24-hour
helpdesk and he guarantees the best possible information provision.
Definition of Business along Three Dimensions; Full Function, Broad
Scope, and Technology

Source: S. Abell
Definition of Business along Three Dimensions; Full Function, Limited
Customer Group, and (Computer Manufacturer Utilizing Existing) Technology

Source: S. Abell
Definition of Business along Three Dimensions; Full Function, Limited
Customer, and (Computer Manufacturer Utilizing Existing) Technology

Source: S. Abell
Definition of Business along Three Dimensions; Limited Function, Broad
Scope, and Peripheral (Manufacturer Utilizing Existing) Technology

Source: D. Abell
Definition of Business along Three Dimensions; Limited Function, Limited
Customer Group, and (Manufacturer Utilizing Existing) Technology

Source: S. Abell
Targed
Definition of
Business
https://www.youtube.com/watch?v=b_X18bmpHaw